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''It's well known that the Coalition had enormous concerns about probity issues under the former government when the Australia Network tender was awarded,'' Mr Abbott said. ''I think it was a particularly dodgy piece of work by the former government.''

In 2011, the Gillard government cancelled a tender process that was poised to award the $223 million 10-year contract to broadcast the Australia Network to Sky News, owned by News Corp. Instead it was handed to the ABC.

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The government must decide whether to can the service, which aims to promote Australia through the ''soft diplomacy'' of its programming, or put the contract back up for tender.

Ms Bishop made it plain earlier in the month that she was unhappy with the performance of the network under the ABC. ''It is meant to be a tool of public diplomacy and I am concerned by the level of negative feedback I receive from overseas,'' she said at the time.

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NSW Liberal MP Alex Hawke said most backbenchers were disappointed with the ABC, particularly over its collaboration with commercial media outlets, including the Australia-Indonesia spying leaks revealed by the ABC and The Guardian, and the performance of the Australia Network. ''Julie has been unhappy with and a lot of us are unhappy with it,'' he said.

Social Services Minister Kevin Andrews confirmed Liberal discontent at cabinet level. ''What goes around comes around,'' he said. ''I think the ABC should be open to constructive criticism about its performance as it would be about the performance of other people and other institutions.''

There has been speculation that the government's cost-cutting Commission of Audit would recommend the contract be terminated.

But Fairfax Media understands the $20 million a year cost to government makes it too small to attract the attention of the audit, which is focusing on spending programs of $1 billion or more.

Deputy Nationals leader Barnaby Joyce said the ABC had a ''natural tendency to the left'' but that he was an avid listener to ABC radio. ''I grew up with the ABC, most people in the country do. It is a staple, as is the fury of the morning ritual where you turn on the morning news … then spend the whole time screaming at the bias you are listening to, but never wanting to change the channel,'' he said.

Mr Joyce said the ABC shuts down debate on climate change by not allowing for dissent by sceptics.

The acting opposition leader, Tanya Plibersek, said moves to strip the Australia Network contract was a ''petty tit-for-tat'' going on between the government and the ABC.